Shakopee Provides Taxpayer Savings | Finance & District Update
Finance Release | February 2021
Recently, Shakopee Public Schools refunded two bonds that will save taxpayers $6.79 million dollars over the next 15 years. When the district refunds its bonds, it’s a process similar to when homeowners refinance their home loans. While this does not mean any additional funding for our schools, all savings from the refunding will go directly to taxpayers. The new lower interest rate on the district's refunding results in savings for district taxpayers.
The district is also proud to announce that Moody’s Investor Services recently upgraded the district’s bond credit rating from Baa1 to A3. The ratings rationale was based on planned structural adjustments being made to balance the general fund. The improved bond rating positively impacted the district’s ability to refund debt, making the two most recent bond refunds advantageous to taxpayers.
As Shakopee Public Schools moves forward with planned budget cuts and adjustments following an unsuccessful levy request last November (2020), recent bond activity has resulted in long-term taxpayer savings.
“School districts have faced many obstacles in the last year,” said Mike Redmond, Shakopee Public Schools Superintendent. “Despite the added pressures of COVID-19, our finance department has continued to work diligently to improve the district’s budget, stabilize the district’s finances and help save our taxpayers money.”